Trade Point Technologies

	Trading the Hum

	High Frequency Center-Stripe Trades

	Trade Every Bar (almost)

	The charts and text here describe a fast trading protocol that while in the bounds of what human traders can do is probably more suited to automated execution. The protocol is designed to capture the price hum around a centerline in both sideways and trending markets by estimating and then getting in front of the mean-reversion trades of the higher frequency bots and alpha neutral trade that together does most of the volume in the most liquid markets. Bias, Volume and Volatility measures are taken from all of the indicators and time frames mentioned here, weighed and then used as reference to paint the current price bar red, blue or gray. The bottom sub-graphs in the charts below reflect our calculation of net long/short new commercial trade and out measure of the current balance of trade/order flow. Without delving too deep into nuance, the protocol is quite simple: Red Bars Sell Short in the Red Bands with a Buy Stop just above the 5 Red Bands and Take Profit in the Blue Bands Below the Center Stripe. Blue Bars Buy Long in the Blue Bands Below the Center Stripe and Take Profits in the Red Bands Above the Center Stripe. Gray Bars Stand Aside. The four charts below are taken from recent trade in the ES and are shown on 8k volume charts. During the 405 minute trading session this chart will usually note something over 100 trade opportunities.

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